Concord Enviro Systems announced that its wholly owned subsidiary, Rochem Separation Systems (India) Private Limited, has secured an order worth INR 126 crores from a major domestic steel manufacturer for the installation of Zero Liquid Discharge (ZLD) systems. The order, received on May 29, 2026, involves design, engineering, supply, erection, and commissioning for Common Effluent Treatment Plant (CETP) upgradation and ZLD system installation. This contract is expected to strengthen the company's consolidated order book and contribute positively to its revenue visibility over the execution period of 18 months.

The disclosure was made to the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the promoter, promoter group, and group companies do not have any interest in the entity awarding the order, and the transaction does not fall within the ambit of related party transactions. The receipt of this order reinforces the company's capabilities in delivering advanced water and wastewater treatment solutions.

Project Details

The project focuses on sustainability and resource recovery, with nearly 99% of the wastewater being recycled using membrane systems and only about 1% going to thermal concentration systems. Prayas Goel, Managing Director and CMD, highlighted that this order involves setting up India’s largest ZLD system by capacity at a renowned multinational conglomerate. He noted that this represents a decade-long partnership maturing into a long-term value creation role.

Order Breakdown

Concord Enviro Systems Ltd. offers a comprehensive suite of technologies and services, including ZLD systems, effluent treatment, desalination, and membrane-based separation solutions. Through its subsidiary, the company leverages global expertise in membrane technology to deliver high-performance, customised solutions for industries such as automotive, pharmaceuticals, and chemicals.

Concord Enviro Systems faced significant execution challenges during FY26, resulting in a 6.2% year-on-year decline in revenue from operations to ₹5,578.56 million and a 61.6% drop in consolidated net profit to ₹197.57 million. The company cited delays in a major Kenya project due to client changes in control and capex planning, alongside supply chain disruptions in the Middle East affecting its Sharjah manufacturing operations. These factors contributed to a revenue shortfall of approximately ₹43 crores in Q4FY26. Despite these headwinds, the company strengthened its technology portfolio with the launch of the H-Xtreme Heat Exchanger and advanced its raw effluent membrane technology.

Financial Performance

For the full year ended March 31, 2026, EBITDA stood at ₹366.66 million, a decrease of 57.9% compared to the prior year, with an EBITDA margin of 6.6%. In Q4FY26, revenue from operations was relatively flat at ₹2,060.44 million compared to ₹2,069.93 million in the same period last year. Net profit for the quarter stood at ₹141.55 million, a decrease of 70% from ₹471.31 million in Q4FY25. EBITDA for the quarter was ₹185.04 million, down 67% year-on-year.

Order Book and Outlook

As of March 31, 2026, the company's order book stood at ₹5,360 million (ACV), with a Total Contract Value (TCV) of ₹8,280 million. The order book includes a significant ₹800 million O&M contract, the largest in the company's history. Management highlighted a strong pipeline of orders worth approximately ₹3,000 million. Additionally, the company is L1 for orders worth ₹1,430 million in the ZLD segment, including an order exceeding ₹1,000 million from a large steel manufacturer.

Looking ahead to FY27, the company expects growth drivers such as CETP-related orders, export markets, and its solar PV pipeline to contribute to revenue. Management targets an EBITDA margin of 14% to 16% for its projects, though near-term cost pressures from air freight and raw materials may impact margins temporarily.

Key Financial Metrics